Group Health Insurance
...Why Should Your Business Offer
Group Health Insurance?
1. Group health plans are more affordable and provide better coverage than almost all individual health plans.
Group health plans offer comprehensive coverage at an affordable rate, making it an attractive option for both employers and employees. With access to a large network of healthcare providers and lower rates, employees can get the care they need without worrying about the financial burden. In today's healthcare marketplace, employer-sponsored coverage is often the best option for employees, and offering a health insurance plan can be a key factor in attracting and retaining top talent. By providing group health insurance, you can show your employees that you value their health and well-being, and help them feel more secure in their employment.
2. Your business will gain tax advantages by offering group health insurance.
Offering group health insurance can provide significant tax advantages for your business. As an employer, you can deduct 100% of the cost you pay for your employees' health insurance as a business expense, which can result in significant savings. Additionally, if a Section 125 plan is set up, employees can pay their portion of the premium with pre-tax dollars, further reducing their healthcare expenses. These tax advantages make offering group health insurance a win-win situation for both employers and employees, allowing you to provide valuable benefits while also managing costs
3. Employees will appreciate good health insurance plans and will be more likely to join or stay at your business.
Employees highly value access to quality healthcare, and providing comprehensive health insurance coverage can show that you care about their well-being and are invested in their future. With a strong benefits package, you can create a positive work environment that fosters loyalty and engagement among your staff. By prioritizing the health and happiness of your employees, you can build a stronger, more productive team that is motivated to help your business succeed.
Examples of How Health Insurance Helps Employees.
Andrea is an employee who has health insurance through her employer. She needs to have surgery that will cost $15,000 at an in-network provider. Here's how Andrea's health insurance plan may work in this scenario: Deductible: Andrea's health insurance plan has a $3,000 deductible. This means that Andrea must pay the first $3,000 of her healthcare expenses before her insurance coverage kicks in. She has not met any part of her deductible before her surgery. Coinsurance: Andrea's health insurance plan has 100% coinsurance after the deductible. Once Andrea has met her deductible of $3,000, her insurance plan will pay 100% of the remaining cost of her surgery, which is $12,000. In this scenario, Andrea would pay the first $3,000 of her surgery to meet her deductible. After that, her insurance plan would cover the remaining $12,000 of the surgery. So, even though the surgery costs $15,000, Andrea would only pay $3,000. Without health insurance, Andrea would have had to pay the entire $15,000 cost of the surgery out of pocket, which would have been a significant financial burden. Andrea was able to save $12,000 in out-of-pocket costs by having health insurance.
Example 2 Coming soon!
Key Health Insurance Terminologies and Definitions
Deductible: The amount of money that an individual must pay out-of-pocket before their health insurance coverage begins to pay for medical expenses.
Copay: A fixed amount that an individual pays for a covered healthcare service, usually at the time of the visit.
Health Savings Account (HSA): A tax-advantaged account that individuals can use to pay for eligible healthcare expenses. It is typically paired with a high-deductible health plan.
Coinsurance: The percentage of healthcare costs that an individual must pay after their deductible has been met.
Premium: The amount an individual or employer pays the insurance carrier for coverage. Premiums are paid to insurance carriers on a monthly basis.
Out-of-Pocket Maximum: The maximum amount of money that an individual must pay for covered healthcare services during a given period, usually one year.
Pre-existing Condition: A medical condition that an individual had before they enrolled in their current health insurance plan.
Explanation of Benefits (EOB): A statement that an individual receives from their health insurance company explaining how much the insurance company will pay for a medical service and how much the individual must pay.
Open Enrollment Period (OEP): The period of time when individuals can enroll in a health insurance plan or make changes to their existing plan.
In-Network: Refers to healthcare providers and facilities that are contracted with an individual’s health insurance plan, often resulting in lower costs for the individual.
Out-of-Network: Refers to healthcare providers and facilities that are not contracted with an individual’s health insurance plan, often resulting in higher costs for the individual.
Preauthorization: The process of obtaining approval from a health insurance company before a medical service or procedure is performed to ensure that it is medically necessary and covered under the individual’s plan.
Exclusion: A medical service or condition that is not covered by an individual’s health insurance plan.
Lifetime Maximum: The maximum amount of money that an individual’s health insurance plan will pay for covered healthcare services over the course of their lifetime.
Primary Care Physician: A healthcare provider who is the individual’s main point of contact for their healthcare needs and often serves as a gatekeeper to specialty care.
Specialist: A healthcare provider who has advanced training in a specific area of medicine and is often consulted for complex or specialized healthcare needs.
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9468 Montgomery Rd,
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